Owning a holiday home still ranks as a ‘good investment opportunity’ with general public

Posted on June 27th, 2012 in Real Estate in Spain by author

The editor of A Place in the Sun magazine, Liz Rowlinson, stated recently that many people would still consider buying a holiday home abroad, either in Spain or other prime location in continental Europe, a good investment, especially when seen in comparison to other investment options.

Potential buyers had become very streetwise with regard to the expected returns on their investments and had become more wary of the costs involved in purchasing as well as owning a holiday or investment home.

Liz Rowlinson had to admit that a recent report published by Homeaway.co.uk had revealed some 65% of holiday homeowners were contemplating selling their overseas homes, but she asserted that second homeowners often considered putting their overseas assets on the market, when the economic climate got tough and explained that this was a symptom of the financial woes affecting the Eurozone at present.

SOURCE: www.propertyshowrooms.com

Property market in Spain continues to perform poorly

Posted on June 27th, 2012 in Real Estate in Spain by author

Official figures released by Fomento, the Spanish government source, reveal that property values across the country fell by 37.5% last year compared to 2010. Excluding social housing, the country recorded a total of 307,931 house sales in 2011, representing an overall value of €50.5 billion.

The Property Register quotes slightly different figures but still shows the same depressing picture. According to the Property Register – 370,204 home sales including social housing took place in 2011. That means the Spanish housing market is now at its most contracted since the Property Register began releasing figures in 2005. In the final quarter of 2011 sales transactions declined by 11%.

The Property Register also revealed that only four regions control the property market: Andalucía, Catalonia, Madrid and the Valencia community have cornered nearly two thirds of the entire sector. Anyone researching figures on the Spanish property market should remember that global figures are not really representative of the actual picture in the country.

According the latest Asking Price Index published by Idealista.com, a leading property portal, asking prices for second hand homes and resales declined by an annual 3.4% during the first 3 months of 2012.

Fernando Encinar, head of research at Idealista.com, explained that the difficult lending situation and latest legislation introduced by the government to put pressure on banks and the property sector to continue with the strategy of making housing more affordable, has resulted in property prices sliding further downwards, a trend that is set to continue until the end of 2012.

“Today you can find homes at prices that seemed unthinkable, especially from the estate agents that are getting the best discounts in the market,” Mr Encinar added. Existing homeowners may be suffering thanks to lower asking prices, but newcomers into the market are happy about the greater affordability of homes.

Fomento’s figures also reveals that new planning approvals declined by 31% per annum in January with just 4,698 approvals being granted. Could this trend spell the end of the construction industry in the country? Once house builders were the driving force behind the Spanish economy, now they are at their wits’ end of how to stay afloat.

Meanwhile, BBVA, one of the country’s largest banks, has predicted the Spanish housing market will continue to contract with house values declining until at least 2013. Sales transactions are also predicted to decline by an additional 20% and house prices are to drop by another 15%, before the market has finally adjusted to rock bottom.

SOURCE: www.spanishpropertyinsight.com

Number of sales for Spanish real estate rose in January 2012

Posted on May 2nd, 2012 in Real Estate in Spain by author

Seen year-on-year the volume of Spanish sales transactions may still be down by 18.6% compared to the same period in 2011, but the number of completed sales rose in January in comparison to the previous month.

The latest data from the Spanish National Statistics Institute (INE) confirmed that the number of transactions for real estate rose by 42.3% in January of this year compared to the final month of 2011.

Interestingly, the INE’s report stated that only 13.8% of all transactions were registered for rural properties, showing that urban properties are what attract buyers these days.

They also seem to be in favour of new versus old, with 54.1% of sales transactions being for new build homes.

In the holiday lettings segment of the market Spain is also showing some improvement, said INE’s report. The number of holidaymakers opting for the self-catering property type rose by 4.7% in January this year, compared to the same period last year.

Buyers looking for an investment opportunity should take advantage of the low Spanish property prices now, especially with rising number of tourists expected to visit Spain this year.

SOURCE: www.propertyshowrooms.com

Murcia increasingly of interest to property buyers

Posted on May 2nd, 2012 in Real Estate in Spain by author

One property market expert said more enquiries about Murcia real estate were being received than for other property markets such as Portugal or the United Kingdom.

Jon Ainge, director of International Property Success, commented how the proposed theme park Paramount Studio were building was beginning to work its magic, especially now since construction on the site is to start in May 2012. “We expect demand for property to increase as a result,” Jon Ainge added. While Murcia is undoubtedly a great location for investment, he cautioned buyers to look for the best locations for their investment, such as 5-star resorts, rather than be swayed by apparent bargains.

The theme park has potential to cover about one million square meter area of land, which the developers have so far purchased and what will be a major tourist attraction in Murcia is scheduled to open its doors to the public early in 2015. The Paramount theme park is to have more than 30 attractions and 2 on-site hotels with a business and leisure complex being planned to be constructed on an adjacent site.

SOURCE: www.propertyshowrooms.com

Newly built homes’ values to fall further this year

Posted on April 19th, 2012 in Real Estate in Spain by author

Cincodias.com reported that the Spanish government predicts the asking prices for newly built homes will fall further in 2012, bearing in mind that nearly 65% of all housing surplus is located at the Spanish costas. The lack of available credit and stagnant labour market has made it more difficult to reduce the number of empty new homes on the market.

The most dramatic price adjustment will be reserved for the 800,000 purpose built holiday and second homes, which are mainly located at the Mediterranean coast.

A recently published study conducted by Cataluña Caixa suggests that two thirds of unsold, and seemingly unwanted housing stock were constructed in coastal areas, ore more precisely, some 65% of such homes were built in Andalusia, the Balearic Islands, Catalonia,  Murcia and Valencia.

The latter is the worst affected region with nearly 210,000 unsold homes still on the market at the end of September 2011, which reflects 25.6% of the total unsold housing stock. Seen in combination with 137,000 unsold homes in Murcia and 107,000 unsold properties in Catalonia, this represents a 55.4% share of the overall unsold surplus.

Worrying still, while the overall availability of new housing stock may have reduced down over the past couple of years, in the Basque Country, Catalonia and Valencia more newly built homes have come onto the market.

Seen on a province by province basis, Castellón is showing a volume of almost 114,000 empty homes, whereas Alicante and Barcelona recorded 57,000 unsold newly build homes respectively. Murcia recorded another 52,000 unsold properties and Valencia registered some 40,000 newly build, unsold properties.

SOURCE: http://news.kyero.com

Sales volume for Spanish property transactions rises by 27%

Posted on March 2nd, 2012 in Real Estate in Spain by author

The new Spanish government, led by the People’s Party, made a number of decisions on how to kick start the property market that have led to a scramble among foreign investors to snap up property bargains in the New Year.

At the end of 2011 international property investors came back to the land of sunshine and Sangria to boost the annual sales volume to €3.6 billion, representing a 27% increase in a year-on-year comparison. What started as a trickle of potential buyers at the beginning of January soon transformed into a positive flood in parts of Spain, where lenders and cash-strapped developers tried to lure buyers to their doors with hugely discounted properties and excellent finance deals.

Spain’s government cut property purchase tax by half, now standing at just 4%. The devaluing of the Euro against Sterling helped also to reduce asking prices by up to 50% and produced mortgage deals with up to 107% loan-to-value offers. International buyers were quick to spot various surveys listing property super sales.

A considerable number of buyers clearly felt that prices couldn’t go down any further, reserving their chosen properties either by internet or making appointments to view them post haste.

A bank-owned property development based in Costa Almeria saw the bank’s reservation system for viewings virtually collapse under the onslaught of potential buyers wishing to make appointments for their chosen properties. Online property portal Propertyinspain.net had nicknamed the development “best key-ready buy”, which no doubt added to the bargain hunters’ frenzy.

Within the space of a week there were multiple buyers lined up for viewings on waiting lists spanning several days, while the banking staff wrestled with a mountain of mortgage application paperwork and tried to allocate reservations to the correct property and potential buyer.

Their system allowed the bank to skip from one failed applicant to the next one in line on their waiting list, using the bank’s lending criteria as the basis for weeding out the unsuitable applicants.

One plucky South African buyer can hardly believe his luck, after having selected via Google and Skype street view and having patiently waited for several days, he eventually got the third penthouse, he’d chosen for just €62,000. The property is a brand new 2-bedroomed pool and sea view penthouse, includes all appliances and has a choice of no fewer than 4 swimming pools.

The most sought after properties in this super sale were the newly built, key-ready penthouses that have rooftop solariums together with either sea views and/or stunning views over four communal swimming pool areas. The €62,000 price tag is for 2 bedrooms, fully-fitted kitchen with appliances, air conditioning and secure parking. Buyers only need a €6,000 deposit to secure the deal.

The properties were discounted by 50% by the bank who owns the penthouses. The properties come complete with guaranteed 90% mortgage deals.

SOURCE: www.propertyinspain.net

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Overnight occupancy rates rose by 3.2% this October

Posted on March 2nd, 2012 in Real Estate in Spain by author

Spanish hotel industry counted some 24.7 million overnight stays this October, a healthy 3.2% increase compared year-on-year. While the overnight occupancy rate by residents fell by 9.3%, the rate of overnight stays from non-residents rose by 11.1%, indicating that efforts to improve Spanish tourism industry are beginning to work.

Latest figures published by the National Statistics Institute show that the average stay also went up by 3.5% compared with October last year, when on average guests stayed for about 3 nights in hotels.

According to the figures, 52% of all available hotel beds were occupied in October 2011, representing an increase of 2.2% from the previous year. Indeed, during the first 10 months of 2011, the rate of overnight stays went up by 6.9% compared year-on-year.

The weekend occupancy rate went up by 3.5%, bringing it to an overall 56.3% result.

The changing fortunes of European economies are reflected in the number of visitors that come to Spain. While the German economy is flourishing once more, the number of German guests staying in Spanish hotels went up by 14%; meanwhile, the British market increased by a mere 5.3%. In combination the two countries were responsible for 9 million guests occupying Spanish hotels this October.

Overnight guests from France, Italy and the Netherlands accounted for year-on-year increases of 15.4%, 10.9% and 21.7% respectively.

The Most Popular Destinations in Spain

Like in previous years the Balearic Islands are still firm favourites among non-resident guests. Here overnight stays from overseas visitors increased by 13.2% in October. The Canary Islands are in second place with an increase of 14.0% and Cataluña is in third place with a rise of 5.9%.

Guests who are normally resident in Spain favour Andalusia, Cataluña and the Valencia region, but occupancy rates have gone down compared to the same period last year, namely by -14.5%, -8.9% and by -10.4% respectively, while the Canary Islands had the highest occupancy rates measured in bed places, namely 70.7% of beds were filled with overnight guests in October 2011. In second place Madrid counted an occupancy rate of 58.7% and the Balearics recorded 57.1% occupancy in October 2011.

The islands and costas are still firm favourites with tourists and this was reflected in the occupancy rates and overnight stays. Barcelona recorded the highest occupancy rate by bed places with 72.9% generally and the highest weekend occupancy rate by bed places with 78.7%. Mallorca had 3.8 million overnight bookings in October 2011.

Madrid and Benidorm also recorded high overnight occupancy rates. Arona on Tenerife had the highest occupancy rate by bed places with a staggering 81.5% being filled and Benidorm ranked as the highest weekend occupancy rate holder with 86.8% of bed places being filled.

SOURCE: http://news.kyero.com

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Marbella’s real estate is not likely to lose in value

Posted on March 2nd, 2012 in Real Estate in Spain by author

Industry experts International Property Success believe that the value of Marbella’s properties won’t fall any further thanks to the increase in overseas investor interest from countries like Russia, the UK and the Middle East. Indeed, the company believes that property prices have bottomed out.

The wonderful year-round climate and the glamour a resort like Marbella has to offer to property investors and those seeking a holiday home has insulated Marbella to a large extent from the kind of price drops that were seen in other parts of the country. Marbella still ranks are as one of the country’s top resorts.

Mr Michael Corry Reid, a spokesperson for Aylesford real estate agency based in Marbella, stated that the high-end, luxury part of the Spanish property market was doing well and that such properties in Marbella were particularly attracting enquiries from overseas buyers.

International Property Success highlighted the need for potential investors to research the location of their new property thoroughly before buying, as the Spanish real estate market is still fluctuating wildly. They also stressed that there were few other places in Spain that had as much potential as Marbella.

SOURCE: www.propertyshowrooms.com

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Russian buyers snap up holiday home bargains in Alicante

Posted on March 2nd, 2012 in Real Estate in Spain by author

This August saw Russian investors outmanoeuvre British buyers, who are usually at forefront of foreign investment in Spanish holiday homes. The “Spanish Press” reported the majority of holiday homes located in the Alicante region were purchased by Russian buyers.

According to Jesualdo Ros, head of the Regional Developers’ Trade Body, buyers from the UK are now also outnumbered by buyers from Belgium, the Netherlands and Scandinavia.

Currently some 18,000 properties are unsold in the Alicante region – making Russian buyers a welcome sight for sore property developers’ eyes. It seems that buyers from Russia favour up market developments, although they are not averse to snapping up the cheapest bargains on the Spanish property market either.

SOURCE: www.spanishpropertyinsight.com

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Spain’s high-end property sector hasn’t lost its appeal with investors, yet

Posted on March 1st, 2012 in Real Estate in Spain by author

According to Lucas Fox International Properties, Spain’s luxury property market is doing well, thank you very much!

While generally Spanish property market may suffer from the worldwide recession and an oversupply of middle to low end properties, luxury homes in Ibiza, on the Costa Blanca and in Barcelona have seen a healthy increase in demand during the first 6 months of 2011.

Citing Barcelona as an example, Alex Vaughan, director of Lucas Fox International, explained that an increase in rental returns in the city are imminent, while property values have remained steady despite the general downturn of the economy.

“The lack of quality luxury apartments and houses should mean that prices in this segment of the market will remain stable,” he added. Mr Vaughan is confident that the second half of 2011 should end on a positive sales note for the luxury property market in Ibiza, where home owners might even see capital growth in 2012.

James Dearsley, European sales director for Atlas International, concurred with these findings earlier this month, when he reported that once again investors were looking at the long-term potential for buying overseas properties. Mr Dearsley added, “Investors should consider the “good returns” that can be achieved from both the rental market and future capital gains”.

SOURCE: www.propertyshowrooms.com

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